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Intel Capital, the venture capital arm of US-based chip-maker Intel Corporation, is likely to step up its investments in India, amid an increase in start-up activity. It also aims to tap the opportunities around the central government’s Digital Indian programme.
“In India, as the internet of things (IoT) takes off, I expect we will see more start-up activity and, hence, more potential for investments,” Kumud Srinivasan, president of Intel India, said on Monday on the sidelines of an event. “As start-ups increase, innovation in these and technology in the IoT space will increase, and that will draw Intel Capital funds.” Srinivasan said Intel Capital had always been open to investing in start-ups that would help advance its business roadmap.
For 2014, Intel Capital globally invested $355 million across 123 companies and saw 23 exits (three Initial Public Offers and 22 merger & acquisitions). To date, it has invested $11.4 billion in 1,403 companies in 57 countries. In India, according to reports, the venture fund invested $62 mn in 2014, across 16 companies.
Its current portfolio in India includes Snapdeal.com, Yatra.com, Healthcart.com, Policybazaar.com, Indiamart.com and Happiest Minds, among others.
In January 2014, Intel Capital India Director Bhavanipratap Rana had said the improving macro economy and a strengthening system in information technology (IT) products would be important factors for attracting more investments into the country. He said Intel Capital had a “very active appetite” for India.
Innovators and start-ups within the country would play an important role in meeting the government’s digital plan ambitions, said Srinivasan. While there has not been much tangible action on the ground, Srinivasan said it would be wrong to say the government’s smart cities programme was only at the level of discussion.
“I would characterise it more as being in the definitional stage,” she said. “If you look at the programme, there is a lot of definition going on in terms of the selection criterion. In terms of execution, it will end up going through a state government, where they will put out a bid that people will then apply to.”
She said the tender process by for smart cities was expected to begin in 2015.
“We do have to rapidly move to other stages, so that we don’t find us in a state where there’s a lot of discussion and very little actually happening on the ground.” she added.
